BRP to increase manufacturing capacity in Mexico to meet side-by-side vehicles demand
Valcourt, Quebec, July 2, 2020 – BRP (TSX: DOO; NASDAQ: DOOO) announced today that it is increasing its manufacturing capacity with the construction of a new facility in Mexico to meet demand for its off-road vehicles (ORVs) business.
This expansion of BRPs production facilities is intended to help keep pace with the increased demand for Can-Am side-by-side vehicles (SSVs) experienced in recent years. After a temporary slowdown due to COVID-19, retail sales went up by over 35% in May, compared to the previous year, and the trend continued in June.
"Despite the pandemic, demand for our products has remained strong, and even surpassed last years figures for the same period, said José Boisjoli, President and CEO. "Our continued innovation and steady growth in SSVs make this additional capacity necessary to meet our goal of achieving 30% market share, he added.
The planned facility will be located in Juárez and represents an investment of an estimated CA$185M and would result in the creation of up to 1,000 permanent jobs. BRPs total capital expenditure for FY21 is now expected to be in a range of CA$275M to CA$300M.
Site planning and construction are scheduled to begin within the next months, and the plant is expected to be ready for operation by Fall 2021. This new plant, combined with the companys two off-road manufacturing facilities in Juárez, will create positive operational synergies and efficiencies.